Pharmacies and distributors would report drug costs and follow purchasing limits

Pharmacies and drug distributors would submit drug cost transparency reports to the department. The requirement covers each pharmacy enrolled in the Medical Assistance program and each distributor that supplies prescription drugs to those pharmacies. The department would set the report format, required drug and pricing information, and submission method. Reports would cover drugs dispensed or distributed under the Medical Assistance program and would include rebates and other discounts when required by the department. The department would decide which drugs must be included. Reports would be required at least quarterly after the act takes effect, with the department able to set a more frequent schedule.

Distributors would be barred from tying brand-name drug prices to generic-drug purchase volume or from offering off-invoice rebates or allowances; enrolled pharmacies would be barred from accepting them. These rules would apply to drugs distributed under the Medical Assistance program, including purchases involving enrolled pharmacies and their distributors. An off-invoice rebate or allowance means a price reduction shown directly on the purchase invoice. The ban on tying prices applies to a distributor's purchase price for a brand-name drug and the pharmacy's purchase volume of generic drugs. The prohibitions would apply after the act takes effect, which is 60 days after enactment.